Bitcoin Clears Critical Resistance and Liquidates $370M in Shorts
Bitcoin staged one of the most dramatic comebacks in recent memory, crushing short sellers with a swift move above $81,000 and wiping out over $370 million in short positions within 24 hours. Coinglass liquidation data showed that the short liquidation volume was on par with the spikes seen on March 2 and earlier this week, marking the end of what could have been a sharp downturn. The bounce came after narrowly avoiding a breakdown below the critical $73,777 support level, with both Monday and Wednesday’s lows successfully defending that line.
Volume on Binance's BTCUSDT pair mirrored Monday’s levels, affirming that the market supports this key price level. The surge in On-Balance Volume led to an upward curl in its moving average, a bullish development that reinforces the strength behind this recovery. Daily RSI also printed a reset, adding to the case for upward continuation. However, BTC still faces major resistance around $85,750, and while the TBO Fast line was hit, the price remains below the daily TBO Cloud. Single-day surges like this are often followed by corrections, a pattern that already played out once in early March.
TBO Signals Provide Early Warning and Confirmation
A TBT Bullish Divergence on the 4-hour chart appeared just before this breakout, proving once again the reliability of these signals. In late March, similar bearish divergence signals successfully foreshadowed the crash from $87,000. Bitcoin now has approximately 5% left before reaching the weekly TBO Fast line at $87,000. While a fast move to $94,000 remains in view, broader weekly momentum will need time to confirm a sustained reversal.
Weekly RSI has begun forming a higher low, another key indicator that the consolidation period is nearing its end. But bullish consolidation does not conclude until BTC closes and holds above the weekly TBO Fast line, which is still several weeks away based on current momentum. One positive milestone was the closing of BTC's CME gap around $81,000 during this surge.
Ethereum Disappoints While BTC Dominance Remains Strong
Ethereum remains frustratingly weak in comparison. Its CME gap remains unfilled, and while RSI just managed to push above overhead resistance, the asset has yet to show the type of volume or structure necessary to reclaim bullish momentum. Ethereum is still far from signaling a TBO Close Short on the daily chart, which is the clear confirmation needed to shift sentiment. Bitcoin is far more likely to trigger this reversal first, reinforcing its position as the market leader in the current cycle.
Stablecoin dominance fell nearly 8% yesterday but failed to close inside the daily TBO Cloud. While this is a step in the right direction, stablecoin dominance still appears structurally bullish across both the daily and 4-hour charts. Bitcoin dominance dropped slightly but remains strong and overbought above 70 RSI. Other dominance metrics such as Top 10 Dominance and OTHERS.D experienced mild recoveries, but both remain trapped below the TBO Cloud and continue to reflect a bearish backdrop.
Crypto Market Cap Recovers Sharply, But More Volume Is Needed
The total crypto market cap closed up 8.35%, stopping just short of a long-standing resistance fan line first tested on March 24. On-Balance Volume is starting to shift bullishly, but higher volume and consistent green candles are required to truly shift sentiment. The broader altcoin market, represented by OTHERS, closed up 10% and returned to a key support-resistance level but failed to close above it. The trend still leans bearish despite the day’s strength, and more follow-through will be needed in the coming sessions.
BVOL7D is currently sitting in the middle of its Rejection Zone, which may translate into reduced volatility over the next one to two weeks. This cooling period could provide room for altcoins to recover, but the environment remains fragile following such an intense rally.
Altcoins Deliver Explosive Gains, Led by SOL, XRP, and Others
XRP gained over 14%, bouncing strongly without closing below its key level at 1.7711. It still needs to close above historical TBO support at 2.12 to turn its trend around. SOL followed through by closing above overhead resistance and filling its CME gap, but the price must now hold and push into the daily TBO Cloud. Volume on SOL nearly doubled the yellow moving average, but a much higher influx of buyers is required to shift the larger trend.
ADA narrowly avoided a breakdown and closed up 13%, staying just above TBO support. LTC printed another TBT Bullish Divergence and shows early signs of reversal, while HYPE returned to the daily TBO Cloud with a 20% rally. ONDO posted an eye-catching 40% move with a surge in volume, and TAO climbed 18%, confirming prior bullish divergence signals from earlier this month.
KAS printed its second TBT Bullish Divergence on a 13% move but remains just below the daily TBO Cloud. S jumped 23% and hit the daily TBO Fast line, while IP climbed 11%, coming close to that same threshold. FLR surged 67% unexpectedly, BERA pumped 135%, and XCN rose 66%, all driven by liquidations and renewed momentum. PENDLE closed up 23% and touched 4-hour TBO resistance, signaling continuation is possible with volume confirmation.
SPX6900 remains a reliable performer, bouncing repeatedly between 25% and 33% from 4-hour TBO Support. FARTCOIN added another 49%, with volume increasing steadily since April 1. HEX printed a TBT Bullish Divergence on the daily close, potentially marking a local bottom.
Despite this euphoric day of gains, traders should remain cautious. Many assets are still in bearish territory overall, and single-day recoveries rarely signal full reversals on their own. A longer period of accumulation and consistent bullish follow-through will be required to solidify these recoveries.
For a deeper understanding of how to navigate markets like these, start with The Complete Cryptocurrency Investor at Mastering Assets.
